How VMware Pricing and Policies Are Changing After Broadcom’s Acquisition

What Texas Businesses Need to Know Right Now

If your business depends on VMware vSphere or any of VMware’s virtualization tools, you are entering a turning point. Broadcom’s acquisition of VMware has brought major changes to pricing, licensing, and partner programs. These changes are happening fast, and many businesses are starting to feel the impact.

Here is what is actually changing, and why your organization should take a closer look before your next renewal.

The Big Shift: Broadcom Completes VMware Acquisition

For years, VMware has been the backbone of virtualization for businesses of all sizes. Now that Broadcom owns VMware, the roadmap looks very different. This is not just a new logo on the box. Broadcom is restructuring how VMware products are packaged, licensed, supported, and sold.

These changes affect costs, flexibility, and future planning for every business that runs VMware on premises.

Licensing and Product Lines Are Changing

One of the biggest shifts is the move away from perpetual licensing. VMware is becoming subscription-only. You have to subscribe to keep your environment supported, and you cannot buy a one-time license anymore.

Broadcom is also consolidating VMware’s product lines. Tools that used to be sold separately are now bundled together in larger packages. For many organizations, this means paying for products or features you may not need.

Less flexibility. Higher costs. Limited control over what you buy.

The Cost Impact You Cannot Ignore

This is where many Texas businesses are feeling the pain.

Renewal quotes are coming in much higher than previous contracts. Some organizations are reporting large increases that completely change the economics of running VMware.

Not every business will see the same numbers, but the trend is clear: VMware is becoming more expensive under Broadcom’s structure.

Big Changes to the Partner Program

Broadcom has also tightened its partner and reseller program. Only a smaller group of partners will be authorized going forward. That means many existing VMware resellers and service providers will no longer have access to the same pricing, support, or tools they once did.

If your IT provider was one of the partners affected, your business could feel that impact at your next renewal or when you need support.

Why Texas Businesses Should Pay Attention

If your company relies on VMware for virtualization, these changes introduce real operational and financial risks.

Here is what you need to evaluate:

• Rising licensing and support costs when you renew
• Less flexibility in choosing only the products you actually need
• Possible changes in support if your existing partner loses VMware access
• Limited options as Broadcom pushes a more rigid subscription model
• Potential impacts on long-term hybrid or multi-cloud strategies

Texas businesses that want predictable costs and long-term control need to review their options early, not at the renewal deadline.

What You Should Do Now

Here are four steps to protect your budget and make smart long-term decisions:

Step 1

Review your current VMware licensing, your renewal date, and the support level you have today.

Step 2

Identify your critical workloads and determine which ones must stay on VMware and which ones could be moved to alternatives over time.

Step 3

Bring in a trusted virtualization advisor like CyberStreams to review your infrastructure, run cost comparisons, and show you which path gives you the best value.

Step 4

If an alternative platform makes financial or strategic sense, begin planning now. Do not wait until Broadcom’s renewal terms lock you in.

Ready to Explore Your Virtualization Options?

If you want help reviewing your VMware costs, exploring alternative platforms, or building a smarter virtualization roadmap, CyberStreams can walk you through your options step by step.

We help businesses evaluate, plan, and implement solutions that protect performance, scalability, and long-term cost control.

Visit
cyberstreams.com/seattle-it-support
to schedule a discovery call.

Your next renewal is coming faster than you think. Now is the right time to get ahead of these changes.